Reference no: EM132479078

Question 1) Net income equals

A) the gross profit on a sale B) operating income minus cost of goods sold

C) the increase in cash for the period D) revenue minus expenses

Question 2) Gross profit equals

A) sales minus cost of goods sold B) operating income minus cost of goods sold C) the increase in cash for the period D) revenue minus expenses

Question 3) Busy Beaver had revenues of $2,000, cost of goods sold of $780, advertising expense of $100, and interest expense of $25. Net income was

A) $1,095 B) $1,120 (3) $1,105 D) $1,220

Question 4) Busy Beaver had revenues of $2,000, cost of goods sold of $780, advertising expense of $100, and interest expense of $25. Gross pro?t was

A) $1,095 3) $1,120 (3) $1,195 D) $1,220

Question 5) Generally accepted accounting principles (GM) A) are a set of mles that a U.S. company must follow when preparing its financial

statements B) are accounting rules determined by the IRS C) are accounting rules required by the U.S. government for all businesses to follow

D) are issued by the International Accounting Standards Board